The upper chamber of the Nigerian National Assembly has advised the Central Bank of Nigeria, Nigerian Insurance Deposit Commission, and the Nigerian Stock Exchange to launch awareness campaigns against cryptocurrency investments and Ponzi schemes in Nigeria.
According to punch, the Senate advised the top financial agencies “to make an unequivocal statement across all the news platforms in all dialects on the dangers of bitcoins as a store of value in Nigeria.”
The Senate also mandated its Committee on Banking, Insurance and Other Financial Institutions to investigate the viability of Bitcoin as an investment form and recommend how its use and trade can be controlled. The committee was given a two-week deadline.
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The report by Punch states that based on the popular 2016 MMM bubble, the Senate is worried that financial institutions in Nigeria have not done enough to educate Nigerians on the risks of investing in Bitcoin. MMM was a very popular ponzi scheme where Nigerians lost Billions of Naira.
Last year we reported that despite several warnings from the NDIC and the CBN, Bitcoin is in fact not illegal in Nigeria. The CBN has instead, taken an approach to see if it can adopt the blockchain technology to solve many of its financial problems.
We will keep following the news reports concerning the legality of Bitcoin’s usage in Nigeria and update you as we get more information.